A recent OECD Report has shown that Telstra has deliberately delayed the introduction of broadband technologies in order to use its market domination to get the jump on any competition.
This has contributed to Australia’s slide down international broadband league tables.
The OECD Working Party on Telecommunications and Information Services Policies, specifically refers to the spoiling role played by Telstra in Australia’s broadband market, noting that Telstra was responding to the “potential threat of competition” when choosing to roll-out cable rather than ADSL in 1997:
[Source: OECD Working Party on Telecommunication and Information Service Policies]
“Broadband and Telephony Services over Cable Television Networks”, p. 24.]
These spoiling tactics are typical and they raise questions about Telstra’s motives for delaying until recently the provision of an untimed ISDN internet services to residential customers.
Once again it appears that Telstra has held back from providing a new internet service that would benefit consumers until it could optimise its market position by doing so.
It is because of these and other tactics that the OECD has found only 1.9% of Australians have broadband and that Australia has slipped to 19th in the OECD in terms of broadband penetration, well below countries such as Canada, the USA, and even Iceland.
Meanwhile, the Minister has made no effort to stop these kinds of activities from occurring. He sees broadband as little more than an entertainment medium and has no comprehension of the economic importance of broadband to small businesses – particularly in regional areas.
Media contact: Adina Cirson – (02) 6277 3334 or the Electorate Office – 0418 488 295.
